Manufacturing Issues Caused by US-China Trade War

Posted on May 11, 2018 by

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Everyday, people in the United States use products from China, and people in China use things from the U.S.  However, both countries have been talking about putting tariffs on those products, and that could have a major impact on manufacturing.

“Last year, U.S. exports to China totaled $130 billion, an amount that’s grown in recent years. Our calculations of federal trade data suggest that products related to aerospace, soybeans, motor vehicles, electronics and paper alone accounted for nearly half the value of all U.S. exports to China,” Governing said. 

That basically means most of the products used in the United States.  More than two dozen American brands also wrote a letter to the President on 19 March expressing concern about the negative impacts from Section 301 of the Trade Act. It said that, if the investigation were to result in broadly applied tariffs on imports from China, it would tax American families with higher prices on household basics, such as clothing, shoes, home goods, and electronics.   Another letter from the Footwear Distributors and Retailers of America echoed similar sentiments,” said Chief Executive.

This could increase what people have to pay for everyday things.

“While China’s proposal would hit most U.S. exports with a 15 percent tariff, it calls for a much steeper additional tariff of 25 percent on pork products. Pork exports support 110,000 jobs nationally, according to the National Pork Producers Council. Iowa is the nation’s largest exporter of pork products, along with Minnesota and North Carolina.  Additional agricultural commodities accounting for sizable, albeit smaller, exports to China include various cotton products, corn, tobacco, and some fruits and nuts. Other top exports, such as fish and dairy products, were excluded from China’s current list of proposed tariffs,” Governing said.

The tariffs could affect foods as well.

Posted in: Amber Weiss